LONDON (Alliance News) - Jupiter Energy Ltd Tuesday said it is reviewing a number of financing options to fund further drilling as it reported a narrowed pretax loss following increased production and revenues.
Jupiter reported a pretax loss of AUD2.5 million in the financial year ended June 30, narrower than the AUD4.9 million loss the year before, following increased production at its trial wells in Kazakhstan.
Revenue rose 31% to AUD7.6 million in the 12 months ended June 30, from AUD5.8 million in 2013. Revenues of USD7.6 million came from the sale of approximately 247,400 barrels of oil at an average price of USD31 per barrel, from three wells.
The J-50, J-51 and J-52 wells, based in Block 31, in south west Kazakhstan, all have trial production licences in place, and the company reported an average daily production for the 2014 financial year of 680 barrels of oil per day, compared to 530 barrels of oil per day in financial year 2013. The company has completed seven wells in total on the permit.
All oil sales were made to the Kazakhstan domestic market, as is required under trial production, and made predominantly through three local traders, said Jupiter.
Further drilling on the field has not been possible due to funding constraints, but it expects to drill its eighth well during December, with a finance package for the well underway. Jupiter also has plans to drill a further two wells in 2015, assuming the appropriate finances are in place, it added.
"There is little doubt that the company has a pivotal 12 months ahead of it with a need to focus on both exploration and appraisal drilling as well as to start the building of the requisite infrastructure to allow the Akkar East oilfield to move into its full field development phase - a key step in the company achieving the first sale of export oil," said Chairman Geoff Gander.
Building of the infrastructure, like the drilling program, will require additional funding and the board is looking at a number of financing options including equity raising and the issue of debt finance, said Jupiter. At the end of the 2014 financial year, cash resources stood at AUS1.3 million.
No dividends have been paid, declared or recommended for payment, it added.
Jupiter's shares were up 0.9% to 22.20 pence per share Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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